Given the clouds over the outlook for oil investment, investors should place their bet on oil ETFs cautiously or could take advantage of the quick turn in sentiment with the help of leveraged or inverse ETFs.

Thus far in 2018, adding higher oil prices to leveraged exchange-traded products (ETPs) has created a combination of combustible profits for traders. As such, leveraged oil plays have had bullish traders gushing as oil prices continued their ascent on the latest supply data from the U.S. Energy Department.

Indications that oil supply could be tightening have continued to send oil prices on their upward trajectory, which have benefitted leveraged exchanged-traded products tied to the commodity's price. Currently, the price of WTI Crude stands at $72 and Brent Crude at just under $82, but the idea of $100 oil prices have already entered into the realm of possibilities by the end of this year. Earlier this week, U.S. President Donald Trump prodded the Organization of the Petroleum Exporting Countries (OPEC) to ramp up production levels in order to temper oil prices ahead of mid-term Congressional elections.

In the short term, the Organization of Petroleum-Exporting Countries (OPEC) has significant influence on the price of oil. Over the long term, its ability to influence the price of oil is quite limited, primarily because individual countries have different incentives than OPEC as a whole. For example, if OPEC countries are unsatisfied with the price of oil, it is in their interests to cut the supply of oil so prices rise.

This is great news for energy stocks. Less supply obviously means an increase in crude oil prices, in energy stocks and in oil stocks. West Texas intermediate crude oil prices hit $71.24 per barrel, while Brent hit $77.21 per barrel, up more than 3%.